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  • M.I.T. Economist vs Common Sense

    In response to yesterday’s PriceWaterhouseCooper’s study showing that the Senate Finance bill would raise, not lower, health insurance premiums for Americans, M.I.T. economist Jonathan Gruber told the New York Times that the opposite was true.

    But think about it for a minute. Imagine if the federal government announced that car insurers had to provide car insurance for any American that applied. Now imagine that the federal government also forced car insurers to charge everyone the same price for car insurance regardless of their driving history. So a texting teen with no driving record would pay the same car insurance rates as a 40 year-old accident-free housewife. A man with two drunk driving accidents would pay the same as … you.

    Do you think these new regulations would cause your car insurance to go up, or down? Gruber says down. His reasoning:

    Mr. Gruber, who helped Massachusetts with its effort to provide universal health insurance coverage, said that the industry report failed to take into account administrative overhead costs that he said will “fall enormously” once insurance polices are sold through new government-regulated marketplaces, or exchanges.

    Insurance companies are gonna make up the difference, and more, in overhead savings? When was the last time a company had to comply with a completely new federal regulatory regime and at decreased overhead costs?

    And speaking of Massachusetts, which enacted the same health insurance reforms that Gruber says will now reduce costs for the rest of the country, what happened to their insurance premiums.

    Oh yeah … they skyrocketed.

    Common sense wins again.

    Posted in Ongoing Priorities [slideshow_deploy]

    16 Responses to M.I.T. Economist vs Common Sense

    1. Mike, Reading, PA says:

      Typical leftist mantra: "Don't let facts get in the way of a good story!"

    2. Freedom of Speech, T says:


      Isn't that the same state whose legislature changed the law overnight to appease their most influential family?

      If I want true leadership, I won't be looking at California, Illinois, Massachuetts, or New York. I feel sorry for their conservative people, both republican and democrat. Talk about being in a place without a meaningful voice.

      I nominate Mr. Gruber for a Nobel Prize in literature. He meant well.

    3. Roger S., Ma. says:

      Might he have been alluding to what one may call "bureaucratic economies of scale"? If so, one may fairly ask if he has done his arithmetic regarding government programs' propensity to waste and corruption? — Somehow doubtful! Or, is he angling for next year's "N"-prize? Peace? Economics? Medicine? Pray tell, Dr.Gruber, which you would prefer?! Would he settle for a WH appointment as the new "Health-Economics" Czar? — If the outcomes weren't so tragic, it would be merely ludicrous to encounter the neo-establishmentarians in their repeated bids for a "ray of limelight". Given the circumstances, it's pathetic!

    4. Concerned, Raleigh, says:

      LOL@ Freedom of Speech. Good Post!!!

    5. Patty, MI says:

      Dr. Gruber forgot about the government expansion required to run, oversee and regulate the new Healthcare Department.

    6. Ralph Laterski says:

      This article is has not been well thought out as using automobile insurance is a poor counter argument to health insurance.

      It is, however, true that costs will be higher for the following reason, many people will refuse to pay for insurance and the burden will fall back on the taxpayer to reimburse insurers.

    7. Nick, Los Angeles says:

      Liberals lie, grandmas die. Libs are shameless in their lying pseudo-intellectualism. Day after day after day, we are told lie after lie after lie.

    8. David Barth, CFA, Ju says:

      All insurance rates are set by government. If they are making too much money it is because of politicians. The Left makes them the scapegoats for their own corruption. Bill Nelson, the Senator of Florida, was the insurance commissioner who set health insurance rates in Florida. He failed to mention that during the conference and no one, left or right, called them on it.

      Does anyone in D.C. know arithmetic? The CBO is imputing 0.25% interest rates for ten years and no one has done the per capital cost of the Nationalized Health Care Plans. We have indebted the unborn to a point that they will never be able to pay it.

      The corruption will continue as long as the incumbents in Congress, who get re-elected in over 99% of the time, are not subjected to Term Limits.

    9. Butch Holman - Jacks says:

      I nominate Conn Carroll for the Nobel Prize and Gruber for the Firing Squad Prize. Hell, I'll even help him!!! Simply Amazing !!!


    10. Pasquale, NH says:

      If you want to see increased coverage that will bring costs down, try this;

      1. Employers give their employees the average Company cost per employee of their current health plan, without the tax penalty.

      2. Employees shop for insurance on the open market just as they do for life or car insurance.

      3. All expenditures for premiums, deductables, co-pays, and other out-of-pocket expenses are tax deductable.

      Viola! Instant incentive to get insurance at a level you can afford without government meddling. I have proposed this to my representatives, but fear it will get no traction because it makes sense and will work.

    11. Bill, Forney, TX says:

      I lived in S. New Hampshire and worked in northern Taxachusettes in industry and spent a year finding a job elsewhere so I could escape. Its yahoos like Mr Gruber and other supposed elites at the Harvards & MITs who drove myself and other industries to more business friendly states in the south. I've learned that economists like Mr. Gruber are very helpful. Get their opinion and take the opposite action. More often than not, you will come out ahead. That's how I made MY money.

    12. Fighting for My Chil says:

      When something does not make sense, we should ask "WHY". If a liberal elite from MIT makes a comment, we should all pause and nod along as their declared word is truth? Either Mr. Gruber received his earlier education in public schools doing "new math" OR he (MIT) is receiving some kind of compensation with our tax dollars to be a mouthpiece for the liberals disastrous socialistic health care policies. My apologies to Mr. Gruber and all of liberal elitests! The days are gone where Americans have a great deal of respect for your prestigous education to give you any validation for your statements. They obviously forgot to teach common sense or you are arrogant enough to think your statments + "MIT" will shock and awe the general public no matter what you say. Your statements should prompt an investigation into tax dollars being earmarked for MIT.

    13. Ross writes from Bra says:

      Where did this fool get his PHD?(I know that BS stands for Bullscat and MS stands for More Scat. Then PHD must stand for Piled Higher and Deeper.)

      Where is he a professor at? MIT,(doesn't that stand for Messed-up In Thinking).

      Did public funds paid for his education and/or grants? With logic like that, no wonder nobody takes economists using mathematics seriously.

      Massachusett truly deserves him and the rest of the fools that brought them "state univeral health-care-A model for the rest of the country" that's now bankrupting the state.

      Liberalism, progressivism, no matter what you call it, fails each and everytime it is applied(it gets to the point the taxpayers can't afford it).

      Maybe it's time that Massachusett, Rhode Island, Conneticut, New Hampshire, and Vermont be formed into just one state; New England. The number of House Representatives in Washington wouldn't change, but the Senate would go from 10 to only 2(I have a simular plan for the "Atlantic states). Those states are not much larger than a lot of counties in other parts of the country.

    14. Rayford Davenport says:

      Since we have conflicting opinions wouldn't it be prudent to slow and find out?

    15. Vake, Washington D.C says:

      Here's the issue: Economists get so involved in their complex mathematical models that they lose sight of common sense and the obvious. Instead of reason, we get equations.

    16. Pingback: Morning Bell: Rules for a Radical White House | Conservative Principles Now

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